Insure Africa Gist

𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗱𝗼𝗲𝘀 𝗻𝗼𝘁 𝗿𝗲𝗺𝗼𝘃𝗲 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆; 𝗶𝘁 𝘀𝗵𝗮𝗿𝗲𝘀 𝗿𝗶𝘀𝗸.

Here's how:

1. 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗜𝘀 𝗣𝗿𝗲𝗰𝗮𝘂𝘁𝗶𝗼𝗻𝗮𝗿𝘆
Insurance is designed as a precautionary tool, not a safety net for bad decisions. Every insurance policy assumes that you will treat your insured property as though it is not insured. This is why most policies include an excess (or deductible), meaning the policyholder is responsible for bearing a percentage of any loss. In simple terms, even when a claim is valid, you still carry part of the cost. This structure exists to encourage responsibility and risk awareness, not complacency.

2. 𝗥𝗶𝘀𝗸 𝗥𝗲𝗰𝗼𝗺𝗺𝗲𝗻𝗱𝗮𝘁𝗶𝗼𝗻𝘀 𝗔𝗿𝗲 𝗣𝗮𝗿𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁
Many people don’t realize that an insurance policy often comes with risk recommendations. These are not suggestions; they are conditions tied to the policy. Depending on the type of asset and risk involved, insurers may require:
- Fire extinguishers or fire detection systems
- Security personnel or surveillance systems
- Safety controls or operational safeguards

These measures are meant to reduce the likelihood or severity of loss. When such recommendations are ignored, and a loss occurs, the consequences can be serious:
- Claims may attract penalties or reduced settlements
- Future premiums may increase
- The policyholder’s risk profile may be negatively affected

Your risk profile (or loss history) helps insurers assess how risky it is to insure you. A poor profile can lead to higher premiums or stricter policy terms in the future.

3. 𝗧𝗵𝗲 𝗛𝗶𝗱𝗱𝗲𝗻 𝗖𝗼𝘀𝘁 𝗠𝗼𝘀𝘁 𝗣𝗲𝗼𝗽𝗹𝗲 𝗗𝗼𝗻’𝘁 𝗣𝗹𝗮𝗻 𝗙𝗼𝗿: 𝗜𝗻𝘁𝗲𝗿𝗿𝘂𝗽𝘁𝗶𝗼𝗻
Perhaps the most overlooked reality of loss is interruption. When an incident occurs, the damage is rarely limited to the physical asset alone. There is often:
- Business interruption
- Loss of customers
- Downtime and reduced productivity
- Delays caused by claims processing
For example, a damaged laptop or phone may seem like a straightforward claim, but the inability to work during the restoration period can result in financial losses far greater than the value of the item itself. In many cases, the indirect loss caused by interruption outweighs the original insured loss.

𝙄𝙣𝙨𝙪𝙧𝙖𝙣𝙘𝙚 𝙬𝙤𝙧𝙠𝙨 𝙗𝙚𝙨𝙩 𝙬𝙝𝙚𝙣 𝙘𝙤𝙢𝙗𝙞𝙣𝙚𝙙 𝙬𝙞𝙩𝙝 𝙥𝙧𝙚𝙫𝙚𝙣𝙩𝙞𝙫𝙚 𝙨𝙮𝙨𝙩𝙚𝙢𝙨, 𝙧𝙞𝙨𝙠-𝙘𝙤𝙣𝙨𝙘𝙞𝙤𝙪𝙨 𝙗𝙚𝙝𝙖𝙫𝙞𝙤𝙪𝙧, 𝙘𝙤𝙢𝙥𝙡𝙞𝙖𝙣𝙘𝙚 𝙬𝙞𝙩𝙝 𝙥𝙤𝙡𝙞𝙘𝙮 𝙘𝙤𝙣𝙙𝙞𝙩𝙞𝙤𝙣𝙨, 𝙖𝙣𝙙 𝙥𝙚𝙧𝙨𝙤𝙣𝙖𝙡 𝙧𝙚𝙨𝙥𝙤𝙣𝙨𝙞𝙗𝙞𝙡𝙞𝙩𝙮.


By: Wisdom Okpechi